
ComfortDelGro to profit from fare increase, higher ridership in 2015
It’s the only operator allowed to grow 1% in 1H15.
ComfortDelGro’s key growth drivers, its bus, rail and taxi segments, are likely to remain strong in 2015, with lower energy prices to help improve profitability.
According to a report by OCBC Investment Research, potential catalyst in Singapore could come from fare increase in 2015, which is expected to be ~3.0%, in addition to higher ridership. For Singapore taxi segment, it is the only operator allowed to grow 1% in 1H15, coupled with higher rental income from fleet renewal.
CDG has steady revenue streams from different geographical regions.